Indirect Tax Weekly Flashback for the period 9 to 15 February 2025.
Table of Contents
Supreme Court
Clause Imposing Service Tax On Lottery Distributor Is Unconstitutional: Supreme Court Uphold Sikkim High Court’s Decision
Case Title: Union Of India Versus Future Gaming Solutions P.Ltd. And Anr.Etc
In a landmark ruling today (February 11), the Supreme Court dismissed the Union Government’s appeal, affirming that lottery distributors are not liable to pay service tax under the Finance Act, 1994. The Court upheld the Sikkim High Court’s decision that Clause (zzzzn) of Section 65(105) of the Finance Act, 2010, which sought to tax lottery-related activities, was unconstitutional.
Delhi High Court
No Absolute Right To Cross-Examine Witness Under Section 138(B) of Customs Act: Delhi High Court
Case Title: Sushil Aggarwal Versus Principal Commissioner Of Customs
The Delhi High Court has held that there is no absolute right to cross-examine witnesses under Section 138(B) of Customs Act.
Conditions Imposed By Customs Dept. For Provisional Release Of Seized Goods Are ‘Discretionary’: Delhi High Court
Case Title: Rocktek Infra Services Pvt. Ltd. Versus Principal Commissioner Of Customs (Import)
The Delhi High Court has held that the conditions imposed by the customs department for provisional release of seized goods are ‘discretionary’.
Madras High Court
Madras High Court Stays Order Declaring Baggage Rules Provision Invalid; Halts Action Against Customs Officers in Gold Thaali Seizure Case
The Madras High Court has stayed a single judge’s order that declared a provision of the Baggage Rules ultra vires to the Customs Act regarding jewellery worn on the person. The single judge had also directed disciplinary action against Air Customs officers who seized gold ornaments, including the nuptial thread (thaali) of a Sri Lankan national, at Chennai Airport.
Tripura High Court
Rs. 4.70 Crores Service Tax Recovery Against NBCC Without Bifurcation: Tripura High Court Dismiss Dept’s Appeal
Case Title: Union of India and Anr. Versus M/s National Building Construction Corporation Ltd.
The Tripura High Court has dismissed the appeal filed by the department as the service tax demand and recovery of Rs. 4.70 Crores against National Building Construction Corporation Ltd. (NBCC) without any grounds mentioned in Show Cause Notice (SCN) and without bifurcation.
CESTAT
Notional Cost Of Free Drawings And Designs Supplied By Maruti Can’t Be Added To Assessable Value Of Auto Parts: CESTAT
Case Title: M/s Mag Filters And Equipment Private Limited Versus Additional Director General (Adjudication) Directorate General of GST Intelligence- New Delhi
The Delhi bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the notional cost of free drawings & designs supplied by maruti cannot be added to the assessable value of auto parts.
The bench of Binu Tamta (Judicial Member) and P.V. Subba Rao (Technical Member) has observed that notional cost of specifications in the form of drawings and designs supplied free of cost by Maruti to the potential vendors cannot be included in the assessable value of the parts or components manufactured by the vendors and cleared to Maruti for their motor vehicles.
Name Of Consignee Or Service Receiver On Invoice Basic Requirement For Availing Cenvat Credit: CESTAT
Case Title: M/S. Leel Electricals Ltd. Versus Commissioner Of CGST & Central Excise
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the name of consignee or service receiver on invoice is a basic requirement for availing cenvat credit.
The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya, (Technical Member) has observed that to be a valid document in terms of Rule 9(2), it is necessary that the document contains all particulars as mentioned therein to avail the credit. The name of the consignee or service receiver on the invoice is the basic requirement for availing the CENVAT Credit.
Import Of E-Rickshaw Parts For Assembly Equals Import of Complete E-Rickshaw: CESTAT
Case Title: M/s Y. C. Electric Vehicle vs Principal Commissioner, Customs (Import), New Delhi (Icd Tkd)
The Delhi Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that when parts of E-Rickshaw are imported and assembled into E-Rickshaw, the goods are liable to be classified under CTH 8703 9000 as complete E-Rickshaw in CKD/SKD condition and not as parts and accessories of Automobiles falling under CTH 8708 9900.
Restaurant-Cum-Bar Suppressed Fact Of Availability Of AC Facility With The Intention Of Tax Evasion: CESTAT
Case Title: Gurukripa Shahenshah Veg. & Non-veg. Restaurant Versus The Principal Commissioner, Central Goods, Service Tax and Central Excise
The Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld invocation of limitation period as the restaurant-cum-bar suppressed the fact of availability of AC facility with the intention of tax evasion.
